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g100num [7]
2 years ago
12

East Bay Semiconductor, Inc., currently a small private company, plans to go public via an initial public offering (IPO) and wil

l issue 10 million shares of stock. It is hoping to sell the shares for an offer price of $25. It hires an investment bank, which suggests that the offer price for the stock should be $20 per share to ensure that all the shares can be easily sold. 5. What is the advantage of following the advice of the investment bankers? What is the disadvantage? Is the investment bank’s incentive to sell the shares aligned with the incentives of East Bay Semi? What trade-off does East Bay Semi face in this decision regarding the issue price? Briefly explain
Business
1 answer:
Alexus [3.1K]2 years ago
7 0

Answer:

What is the advantage of following the advice of the investment bankers? What is the disadvantage?

Whenever a small company decides to carry out an IPO, the risk of not selling all the stocks exists and it has happened many times before. East Bay's executives probably believe that their company is the next Apple or Microsoft, or any other super huge high tech corporation. But the reality is that it is not. If the IPO goes on and not all the stocks are sold, the stock price will plummet by the end of the trading day.

On the other hand, maybe East Bay in a couple of years will be worth more than Tesla, Amazon or any other top corporation, and pricing their stocks too low will only result in losing money.

Actually, no two analysts in the world ever agree on the exact intrinsic price of stocks. Even though math should be the same and they all use the same formulas, several factors are considered differently.

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The evolutionary development of the species H. sapiens a. is determined solely by environmental factors b. is a Mendelian trait
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Answer:

The correct answer is letter "C": is the result of both genetic and environmental factors.

Explanation:

There have been several studies about human evolution as a species. It is inevitable to relate this topic to the prominent findings of Charles Darwin (1809-1882) in his book "<em>On the Origin of Species by Means of Natural Selection, or the Preservation of Favoured Races in the Struggle for Life</em>" or simply known as the <em>Origin of species</em>. Mainly, Darwin sustained that, in general, <em>species' evolution happens thanks to environmental adaptations that are transmitted from one generation of a species to another in their genetics.</em>

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What should you do to change a value in si units to a value in u.s. customary units?
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Use a conversion factor.
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A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol
ankoles [38]

Answer:

Correct option is A

“The flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing” is the correct option  

Explanation

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If a product becomes more easily available what will happen
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In its current year income statement, Cere Co. reported income before income taxes of $300,000. Cere estimated that, because of
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The amount that Cere should report as income tax expense is $84,000.

Income tax expense refers to the amount of taxes owed by a person to the taxing authority.

  • The Formula for Income tax expense is Taxable income * Effective tax rate.

<u>Given Information</u>

Taxable income = $280,000

Effective Tax rate = 30%

Income tax expense = $280,000  * 30%

Income tax expense = $84,000

Therefore, the amount that Cere should report as income tax expense is $84,000.

See similar solution here

<em>brainly.com/question/13003196</em>

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